Two former Parramatta Eels players are accused of harbouring semi-automatic weapons and possessing more than half-a-million dollars in cash after dramatic arrests in Sydney's Centennial Park yesterday.

Defence security conduct 'not excessive'

A defence inquiry has found the conduct of defence security personnel who man-handled a group of peace protesters who broke into a defence base wasn't excessive.

But it said there remained a perception that their actions were heavy-handed.

The four protesters broke into defence's Swan Island Training Facility in Victoria on October 2, 2014, subsequently claiming they were thrown to the ground, handcuffed, stripped naked, searched and threatened with drowning.

The four were associated with the Swan Island Peace Convergence which has held annual anti-defence protests at Swan Island for the last five years.

In 2010 and 2013, protesters were arrested after breaking into the base.

The 2014 event followed elevation of the national terror alert level from medium to high on September 12 and the lifting of the defence base alert status a week later.

On September 14 police in Melbourne shot and killed a man who attacked them with a knife. That was regarded as a terror attack.

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In interviews with the defence inquiry officer, defence security personnel cited this incident, saying they were not aware whether those arrested were non-violent protesters or may have held more sinister intentions towards defence members.

The four had their hands secured with cable ties, bags placed over their heads and were searched. Two then had their trousers cut off with a pocket knife for a more detailed search.

None of the four agreed to be interviewed for the inquiry but provided statements, saying they were thrown to the ground and dragged, had bags put over their heads and were stripped naked before being threatened with rape and drowning.

The inquiry concluded they were trespassing on defence premises and their arrest was reasonable in the circumstances.

In the circumstances, the search was necessary to

ensure safety of all those involved.

Use of blindfolds, to prevent identification of defence personnel whose identity is protected, was also reasonable. But blindfolds should not be used in future.

The inquiry found that defence personnel involved responded in a professional and lawful manner.

"The application of minimum force during the arrest and search procedure is supported by the lack of any complaint by the arrested persons to either civilian or military law enforcement agencies concerning their treatment," the inquiry report says.